Inflation spike spells trouble for borrowers

New data from the Office for National Statistics (ONS) reveals that annual house price growth in the UK accelerated to 2.9% in September, with the average property value reaching £292,000. However, the rise in inflation to 2.3% in October has raised concerns among mortgage borrowers. David Hollingworth, associate director at L&C Mortgages, stated that the inflation increase could “bring further headaches for mortgage borrowers”, as it diminishes the likelihood of a base rate cut by the Bank of England. Alice Haine, a personal finance analyst at Bestinvest, noted that homeowners and first-time buyers may feel disheartened by the inflation reading, which complicates the mortgage landscape. The average cost pf a London home fell 0.5% to £526,000.

The Standard (20/11/2024)